Alongside the half-year results on August 2nd, Unilever announced plans to accelerate the
transformation of the business. Unilever UK today advised employees of proposed changes
to its manufacturing sites across the country designed to further increase competitiveness
and drive growth.
Significant improvements to the business across the world have been made over the past two years, including the ‘One Unilever’ programme, and there has been a steady improvement in performance, with 5.8% growth for the company globally over the first half year.
The proposed changes announced in the UK today reflect the opportunities Unilever sees to go further and faster in increasing supply chain efficiency and responsiveness and to really accelerate the transformation of the UK business. It will consist of a combination of restructuring and investment which will, regrettably, have an impact on employee numbers over the next 12 months. As a result of the additional investment, there will be some new
roles created at Norwich and Trafford Park.
Dave Lewis, Unilever UK Chairman said, “The announcements made today mark a significant step forward in increasing the efficiency and responsiveness of our manufacturing in the UK. The investment of some £30 million in our technological capability is key, but the impact on our employees is very real and we will handle this in a sensitive way, consistent with the values of our business.”
Further details
Streamlining and investment at Burton, Port Sunlight & Warrington
Following reviews of its laundry detergents and bleach manufacturing operations at Port
Sunlight and Warrington, and its food production operation at Burton, an additional investment of some £18 million is being made to improve technology and cost effectiveness. As a result of this investment, there will be a reduction in the number of people across the three sites of approximately 315 which will take place over the next 12 months.
Changes in supply network at Gloucester, Norwich & Trafford Park
As a consequence of these changes, certain technologies will be transferred to our Norwich site, creating about 15 additional roles. At Unilever’s tea production site, Trafford Park,
increasing volume will lead to the creation of about 40 additional roles. The ice cream
distribution requirements for the UK market have also been reviewed and Unilever has
entered negotiations with third parties to build a new automated warehousing facility on the
Gloucester site.
Reviews announced at Purfleet, Leeds & Crumlin
At Unilever’s spreads production site at Purfleet, a review currently underway will be widened to include the wider issue of cost competitiveness and of technological capability and to ensure that Purfleet remains a key part of our manufacturing network. At Leeds, a further £10 million is being invested to support the success of our deodorants business and develop a world class aerosol capability. At the same time the factory will review overall cost competitiveness and explore future scenarios for the production of roll ons in Leeds. At Crumlin where Pot Noodle is manufactured, the company is undertaking a comprehensive review looking at improving the competitiveness and profitability of the Pot Noodle business.
All three factory reviews are expected to be completed by April 2008.
It is likely that there will be an impact on employee numbers at the sites under review, but it is too early to say just what the total will be.
A full consultation with employee and union representatives will now commence at all affected sites and we will offer an extensive employee support programme to assist all staff.
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